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Sukanya Samriddhi Yojana – The Best non-equity Instrument in the Market

by Priyanka Anand • June 22, 2016 • Comments Off on Sukanya Samriddhi Yojana – The Best non-equity Instrument in the Market

Sukanya Samriddhi Yojana was launched by the PM Narendra Modi on 21st January 2015; under the Campaign of ‘Beti Bachao, Beti Padhao’. This scheme was launched to rally the expense of the Girl child’s higher education and marriage.

Minimum INR. 1000/-and Maximum INR. 1,50,000/- amount can be deposited in a financial year by the accountholder. Subsequent deposit in multiple of INR 100/- can be made.

Maximum period for investing is 15 years.

E-transfer option is also introduced by the government in current financial year.

Sukanya Samriddhi Yojana (SSY) account can be opened by a resident Indian only.

Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.

Account can be closed after completion of 21 years of the girl child.

Premature closure will be allowed after completion of 18 years /provided that girl is married.Premature closures on grounds of medical exigencies cannot be done unless the account has been functioning for at least five years. If the account holder wants to withdraw before end of five years, his investment will earn interest at the rate of a post office savings bank account.

This scheme gives an interest of 8.6% Per Annum (w.e.f 1-4-2016), calculated on yearly basis, yearly compounded. It is higher than PPF, FD and recurring deposits. Like PPF, Sukanya Samriddhi Yojana (SSY) provides a tax benefit under Section 80C. So, for any traditional investor, has a daughter below the age of 10 years is the best debt instrument in the market.